Federal investigation into Binance's sanctions adherence requested by Senate group
A coalition of 11 senators calls on US authorities to investigate Binance's compliance with AML regulations and sanctions following allegations of Iranian transaction activity and evasion concerns.
Eleven United States senators have called upon federal regulators to examine whether cryptocurrency platform Binance is maintaining compliance with American sanctions protocols and Anti-Money Laundering (AML) standards, referencing allegations from recent investigative reports.
Through correspondence delivered Friday to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, these congressional members requested a "prompt, comprehensive review" examining the platform's internal compliance mechanisms and whether it continues to honor settlement terms established in 2023.
The congressional representatives highlighted claims suggesting roughly $1.7 billion worth of cryptocurrency assets moved through Binance's platform to Iranian organizations with terrorism connections, including entities associated with the Islamic Revolutionary Guard Corps and the Houthis. Investigation efforts have also allegedly uncovered over 1,500 user accounts accessed from within Iran, along with possible activities related to circumventing Russian sanctions.
The correspondence indicates that certain Binance compliance personnel who discovered questionable transactions faced termination afterward, while law enforcement organizations reported experiencing reduced cooperation from the exchange regarding customer data requests.
Senators warn Binance products could enable sanctions evasion
The letter bears signatures from Senators Chris Van Hollen and Ruben Gallego, alongside Angela D. Alsobrooks, Andy Kim, Raphael Warnock, Tina Smith, Catherine Cortez Masto, Mark R. Warner, Elizabeth Warren, Jack Reed and Lisa Blunt Rochester.
Additional concerns were expressed regarding recently introduced products, such as payment card services rolled out across regions within the former Soviet Union and collaborative ventures involving stablecoin programs, which lawmakers cautioned might enable circumvention of sanctions.
The congressional delegation requested that these government agencies provide a response no later than March 13 detailing any investigative actions undertaken regarding the exchange's operations.
Earlier this week on Tuesday, Senator Richard Blumenthal, who serves as ranking member on the Senate Permanent Subcommittee on Investigations, initiated a separate congressional investigation targeting Binance. His office transmitted correspondence to Binance CEO Richard Teng demanding documentation and internal company records concerning the platform's sanctions oversight systems.
Binance denies Iran-linked transaction claims
Through a statement provided to Cointelegraph during the current week, Binance refuted accusations that its services enabled unlawful transactions, asserting the company detected and communicated suspicious activities to relevant authorities and maintains policies prohibiting Iranian user access. A representative from the company indicated that recent press reporting has distorted the platform's actual operations.
During the previous week, the cryptocurrency exchange also challenged a published report asserting it handled in excess of $1 billion in Iran-connected transfers and denied terminating investigators in relation to this matter.
CEO Teng has additionally condemned a Wall Street Journal article alleging $1.7 billion worth of Iran-related transactions, characterizing it as defamatory and demanding a formal retraction.